What term best describes the characteristic of a process if past circumstances could
exclude certain evolutions in the future?
a) Path dependence
b) Correlated research strategies
c) Evolutionary economics
d) Dynamic efficiency
e) Dynamic capabilities
What term best defines a complex set of behavior patterns that Nelson and Winter view
the actions of firms to be a result of?
a) Routines
b) Decisions
c) Heuristics
d) Relationships
e) Resolutions
Which of the following is a trend that Chicago area hospitals should least likely be
worried about with respect to pricing?
a) The FTC recently won an antitrust case that forced the members of the Evanston
Northwestern Healthcare system to negotiate independently with insurers
b) There has been considerable consolidation (hospital mergers) in regional submarkets,
including the city of Chicago and the important North Shore suburbs
c) Employers are asking employees to bear more of their own health care costs. At the
same time some employers are reconsidering the decision to opt for wide, but costly
MCO networks
d) If regulatory barriers fall, entry by specialty hospitals in wealthier communities could
skim off some of the areas’ most profitable patients
e) Employers, payers, regulators and patients are demanding and getting more
information about hospital quality
How much revenue a firm brings in by improving the quality of a product such that
more consumers want to buy it depends on which two factors?
a) The decrease in demand caused by the increase in quality and the incremental profit
earned on each additional unit sold
b) The increase in demand caused by the increase in quality and the incremental profit
earned on each additional unit sold
c) The increase in demand caused by the increase in quality and the incremental loss on
each additional unit sold
d) The decrease in demand caused by the increase in quality and the incremental loss on
each additional unit sold
e) The quality of changes to the original product and the decrease in demand cause by
the changes in quality
Which of the following structures best describes a small group of people where one
member of the group specializes in monitoring and coordinating the work of other
members?
a) Complex hierarchy
b) Individually
c) Self-managed team
d) Hierarchy of authority
e) Divisional
Which of the following is measured by a report card that assesses the components of a
product?
a) Process
b) Inputs
c) Warrantees
d) Outcomes
e) Longevity
Which of the following conditions may make predatory pricing by incumbents rational?
a) When entry costs are very high
b) When entrants are uncertain about market conditions
c) When existing firms have significant coast advantages
d) When entrants are required to obtain extensive licensing and regulatory approvals
e) When exiting firms have increasing marginal revenue
The biotechnology industry is seeing a broad pattern of disintegration due to the fact
that big pharma companies are less and less doing which of the following core
functions?
a) Infrastructure
b) Product innovation
c) Obtaining regulatory approval
d) Customer relationship
e) Manufacturing and communications
Self-containment emphasizes which of the following when developing coordination?
a) Cost structures
b) Agency costs
c) Strong lateral relations
d) Autonomy across units
e) Unitary alignment
Which of the following is not a Legal Restriction?
a) Patent
b) Copyright
c) Trademark
d) Intellectual property
e) Operating rights
Which of the following is the definition of “competitors?”
a) Firms that manufacture similar products
b) Firms located in geographic proximity to each other
c) Firms that sell products to the same group of buyers
d) Firms whose strategic choices directly affect one another
e) Firms that purchase factors from the same suppliers
What term describes a situation where two or more parties expend resources battling
each other?
a) Predatory pricing
b) War of attrition
c) Dumping
d) Capacity Expansion
e) Puppy Dog Ploy
What type of entry exists if structural entry barriers are low, and either (1)
entry-deterring strategies will be ineffective or (2) the cost to the incumbent of trying to
deter entry exceeds the benefits it could gain from keeping the entrant out?
a) Deterred Entry
b) Judo Entry
c) Stealth Entry
d) Accommodated Entry
e) Blockaded Entry
Which of the following is not a principal/agent relationship?
a) Shareholders/Company CEO
b) Shareholders/Company employees
c) Company/Hired counsel
d) Carmaker/Auto part supplier
e) Shareholder/IRS auditors of a company
What term describes features that need to relate to each other in a precise fashion
otherwise they lose a significant portion of their economic value?
a) Design attributes
b) Critical components
c) Contract factors
d) Coordination factors
e) Relationship attributes